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October 13, 2025 | 2 months ago

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Sonatrach signs $5.4 billion contract with Midad Energy

The Sonatrach group has announced the signing of a production sharing agreement with Saudi company Midad Energy North Africa for the exploration and exploitation of hydrocarbons in the Illizi Sud contract area, located in the Illizi basin, approximately 100 kilometres south of In Amenas.

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According to a statement from the group quoted by national television, this contract covers 30 years, with the possibility of a 10-year extension, and includes a seven-year research phase.

The total value of the contract is estimated at US$5.4 billion, of which US$288 million will be devoted to exploration investments. Midad Energy North Africa will finance all planned investments for the exploration and exploitation phases, Sonatrach emphasizes.

A strategic partnership

Total expected production at the end of the contract period is estimated at 993 million barrels of oil equivalent, including 125 billion cubic meters of marketable gas and 204 million barrels of liquid hydrocarbons, comprising 103 million barrels of liquefied petroleum gas (LPG) and 101 million barrels of condensates.

Sonatrach also emphasized the priority given to local content and national subcontracting to promote the participation of Algerian companies in implementing this project.

This contract is the culmination of work resulting from the memorandum of understanding signed between Sonatrach and Midad Energy North Africa on March 3, 2024, marking a new stage in strengthening energy relations between Algeria and Saudi Arabia.

October 14, 2025 | algeria-logo

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